Carlyle is no longer actively pursuing a deal for the international assets of Lukoil, Russia's second-largest oil producer, a spokesman for the private equity firm said on Friday, Reuters reported.
The deal excluded Lukoil's assets in Kazakhstan, which the Russian group said it would retain. Neither side disclosed a price, and the agreement was far from certain from the outset. Lukoil stressed that it was not exclusive and was continuing negotiations with other potential buyers. Completion was also subject to conditions, including approval from the US Treasury's Office of Foreign Assets Control (OFAC). Carlyle said the deal depended on its due diligence and regulatory approvals.
Carlyle had set out its approach to ownership, focusing on ensuring operational continuity, preserving jobs, and supporting safe, reliable performance across the portfolio. The firm pointed to its experience in the sector, including around $20bn invested in oil and gas, renewable energy, and infrastructure. Reuters reported that Carlyle had been in talks to bring in Abu Dhabi-based investors Mubadala, XRG, and IHC, as well as the US Development Finance Corporation, as partners.
The sale process stems from US sanctions. OFAC designated Lukoil on 22 October 2025, after which the company put its international assets up for sale. The portfolio, initially valued at around $22bn, drew interest from at least a dozen potential buyers, including Exxon Mobil and Austrian investor Bernd Bergmair. OFAC's general licence, most recently extended on 18 September, now expires on 22 October. With Carlyle out, attention may turn to other bidders, including US billionaire Todd Boehly, who the Financial Times reported last month had secured backing for his own bid.
Source: PE Insights · Summarized by HeadlinesBriefing